New opportunities
New business and investment opportunities in Shandong province
Located towards the north of China’s eastern seaboard, Shandong’s population of 94 million makes it the third most populous of China’s provinces, with 50 per cent more residents than the UK. Its RMB 3.38 trillion economy is approximately a quarter of the UK’s. GDP has grown at a continuous double digit rate for 18 years and expanded 11.9 per cent in 2009.
Substantial natural resources and fertile land make Shandong’s primary industry the largest in China by output. Good transport links and reasonable input costs support its position as a leading manufacturing hub, second only to Guangdong and although the tertiary sector’s share is smaller, the Government is addressing the shortfall and is keen to bring in expertise from overseas, presenting opportunities for UK companies. Shandong’s rapid development has given rise to a burgeoning consumer class. It has the second highest retail sales (RMB 1.038 trillion in 2008) of any province in China and is home to some of China’s best-known brands, including the consumer and white goods manufacturers Haier and Hisense, and also Tsingtao Beer. In short, all major industries are represented within Shandong and its broad range of industrial and commercial activity translates into considerable potential for UK businesses across many sectors. There are particularly good opportunities in the following sectors:
- > Food and agriculture
- > Infrastructure
- > Energy, minerals and chemicals
- > Renewables and the environment
- > Advanced engineering
- > Professional services
- > Retail and consumer goods
The Chinese national Government has announced several projects focused on Shandong, driving both further growth and exchange between cities and regions. Directives such as the “Development Plan of an Efficient Eco-Economic Zone in the Yellow River Delta” and the “Blue Shandong Peninsula Economic Zone” (blue refers to marine industries) will play an important part in the development of the province and the interplay between the cities that it encompasses. The emphasis on the Yellow River Delta will lead to more interconnections between the cities in this area, overlapping with the development of the Capital and Peninsula Clusters.
Please contact SBC (Emailing: sbc@sino-brit.com ) to obtain further information.